4 4 9 of 55 0 complete This Test 150 pts possib his Questio

4) 4 9 of 55 (0 complete) ? This Test: 150 pts possib his Question: 2 pts Which of the following would appear as a line item on the income statements of both a merchandiser and a manufacturer? 0 A. Cost of Goods Sold O B. Direct Labor O C. Cost of Goods Manufactured O D. Direct Materials

Solution

Answer is A.

Merchandiser purchases goods and sell them at higher price. Whereas, manufacturer manufacture goods from raw materials purchased.

Direct labor, cost of goods manufactured and direct materials only appear in income statement for manufacturer. But cost of goods sold appear on the income statements for both manufacturer and merchandiser.